Invest in MogulREIT I
MogulREIT I is a limited liability company formed to invest in and manage a diversified portfolio of commercial real estate investments, such as loans, equity in commercial real estate ventures, and other real estate-related assets.
MogulREIT I is a registered, non-traded REIT. That means that it is registered with the Securities and Exchange Commission, but is not traded on a stock exchange.
MogulREIT I can invest in a variety of property types, including but not limited to, multifamily, office, industrial, self-storage, and retail real estate opportunities. MogulREIT I can invest in various commercial real estate-related equity and debt assets across these different property types
MogulREIT I is available to both accredited and non-accredited investors. For non-accredited investors, limitations based on the investor’s annual income or net worth apply to the amount that may be invested.
For most investors, the minimum investment is currently $1,000, or 100 common shares, and investors may invest additional capital at a minimum of $1,000.
For Self-Directed IRA (“SDIRA”) investors, the minimum investment is $5,000, or 500 common shares, and $1,000 thereafter.
If you invest with a Registered Investment Advisor, the minimum is $5,000, or 500 common shares, for the first transaction, and $1,000 thereafter.
Redemptions from the fund are generally allowed on a quarterly basis, subject to the redemptions rights and limitations outlined in the Offering Circular.
How is investing in MogulREIT I different from other investment opportunities offered on the RealtyMogul.com Platform?
The RealtyMogul.com Platform currently offers individual real property-related investments as private placements to accredited investors only. The RealtyMogul.com Platform allows accredited investors to review due diligence materials for individual transactions and invest in one transaction at a time. Investing in MogulREIT I is different since investment decisions are made by its Manager, RM Adviser, LLC, and you are investing in a diversified portfolio and not a specific transaction or property. Additionally, MogulREIT I is accessible to both accredited and non-accredited investors and offers a lower investment minimum than some of the transactions offered on the RealtyMogul.com Platform. RM Adviser, LLC charges a 1% asset management fee for managing MogulREIT I and its investments, whereas the other investment opportunities offered through the RealtyMogul.com Platform may charge fees that are higher or lower. Finally, MogulREIT I is set up as a “blind pool” REIT, which means that it is not committed to acquiring any particular investments with the net proceeds of its offering. Investing in MogulREIT I can lead to greater diversification because MogulREIT I intends to invest its assets in multiple real estate opportunities. However, unlike other investments on the RealtyMogul.com Platform, a purchaser of common shares in MogulREIT I may not know what investments MogulREIT I will make with its assets at the time the investor purchases common shares in MogulREIT I.
MogulREIT I is managed by RM Adviser, LLC, a SEC registered investment adviser and wholly-owned subsidiary of Realty Mogul, Co. RM Adviser, which manages MogulREIT I’s day-to-day operations, will have access to the experienced team of real estate finance professionals employed by Realty Mogul, Co., including Jilliene Helman, its Chief Executive Officer. Many of the senior executives and loan origination professionals at Realty Mogul have deep experience in the commercial real estate sector and have been in leadership roles at financial services institutions for many years. Collectively, these professionals have approximately 200 years of combined direct experience in the commercial real estate business, and have managed more than $4 billion of originations and more than $8.5 billion in underwritings in commercial real estate loans and equity investments. MogulREIT I expects to benefit from the knowledge and industry contacts, experience and judgment that these professionals have accumulated over numerous real estate cycles.
The credit team of Realty Mogul and its affiliates is very experienced in reviewing and underwriting commercial real estate investments. This team has substantial experience in reviewing and underwriting commercial real estate investments and has adopted approaches used by real estate finance industry leaders in its analysis of real estate capital structures and financial strategies, and these approaches will be brought to bear for MogulREIT I’s benefit.
The Manager performs the following services: investment advisory and acquisition services (including performing due diligence on MogulREIT I’s investments), offering services, asset management services, accounting and other administrative services, shareholder services, financing services, and disposition services.
MogulREIT I pursues the investment strategy using the criteria described in its Offering Circular. Some opportunities may arise which could be allocated to either MogulREIT I or the RealtyMogul.com Platform. In these instances, any potential debt investment exceeding $1,000,000 and equity investment exceeding $1,500,000 will first be made available to MogulREIT I. If MogulREIT I chooses not to invest and the investment opportunity meets the investment criteria for Realty Mogul, then those investment opportunities will be made available to other investors through the RealtyMogul.com Platform. MogulREIT I may, where the investment committee of its Manager determines that the size of an investment would create undue concentration in its portfolio or that the entire investment would otherwise be unsuitable for the REIT, permit a portion of an investment to be sold on the RealtyMogul.com Platform.
Invest in MogulREIT II
MogulREIT II is a newly organized Maryland corporation formed to invest in multifamily apartment buildings throughout the United States with both preferred equity and common equity. The REIT’s objective is to make investments into apartment communities that follow one of two core criteria:
- Demonstrated consistently high occupancy and income levels across market cycles; and/or
- Offer value add opportunities with appropriate risk-adjusted returns and the potential for significant value appreciation.
Common equity and preferred equity investments in multifamily apartments.
Common Equity: Equity ownership in a piece of real estate that typically receives a preferred return and a share of the potential appreciation upon sale.
Preferred Equity: Equity ownership in a piece of real estate with a priority of payments on cash flow and upon liquidation, typically receives a fixed coupon that is higher than the properties distributable cash flow and in return does not share in any of the potential appreciation upon sale.
MogulREIT II is available to all investors, subject to some regulatory limitations.
The regulators define some investors as either ‘accredited investors’ or ‘non-accredited investors’. Both may invest in the REIT, but the amount of money that you may invest is different if you are an accredited investor or a non-accredited investor.Accredited investors are defined as:
- Individuals earning an annual income of over $200,000 per year for the last two years ($300,000 per year if filing as a couple), with the expectation of maintaining this level of income in the future; OR
- Having a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence; OR
- Being a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered; OR
- Being a business in which all the equity owners are accredited investors; OR
- Being an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
If you do not meet into any of the guidelines above, you are likely a non-accredited investor. If you are a non-accredited investor, you may still invest in the REIT but your investment may be limited based on your annual income or net worth. RealtyMogul.com may help you to calculate your maximum allowable investment amount when you initiate an investment on our platform.
Investment minimums for MogulREIT II differ based on account type.
For some investors, the minimum investment is $1,000, or 100 shares, and you may invest additional capital in increments of $1,000.
If you invest out of a self-directed IRA account, the minimum is $5,000 for the first transaction, and $1,000 thereafter.
If you invest with a Registered Investment Advisor, the minimum is $5,000 for the first transaction, and $1,000 thereafter.
Public nontraded REITs are not liquid investments, which means you may think of an investment in MogulREIT II as a long-term investment into real estate. We have, however, adopted a Share Repurchase Program whereby we alone may purchase shares back from investors. The Share Repurchase Program is designed to provide our shareholders with limited liquidity on a quarterly basis for their investment in MogulREIT II shares, subject to availability of capital.
After 12 months of ownership, the amount Realty Mogul may pay to repurchase your shares is set at the “Repurchase Base Price Per Share”, the lesser of the price you paid for your shares or the current Net Asset Value (“NAV”), minus a discount based upon how long the shares have been held.
The discount on the Share Repurchase Price is dictated by the stock purchase anniversary as follows:
|Share Repurchase Anniversary (Year)||Effective Repurchase Rate(1)|
|Less than 1 year||(Lock-up) 0%|
|1 year until 2 years||98%|
|2 years until 3 years||99%|
|3 or more years||100%|
|Death (Exception Repurchases)||100%|
(1) As a percentage of the Repurchase Base Price per share. The repurchase price will be rounded down to the nearest $0.01.Additional details regarding MogulREIT II, Inc.’s Repurchase Program are found in the Offering Circular, including all supplements.
- How do you decide which properties or investments go into MogulREIT II and which are offered to the Realty Mogul Platform or other MogulREIT offerings?
Investment opportunities may arise that could be allocated to the Realty Mogul Platform, the MogulREIT II or another MogulREIT offering. In these instances, investments may be distributed as follows:
- Equity investment opportunities under $1,500,000, excluding preferred equity, may be allocated to the Realty Mogul Platform
- If the REITs have capital ready to invest, all other investment opportunities may be allocated based upon the appropriateness of each investment opportunity to each REIT's investment policy
If an investment opportunity is appropriate for the Realty Mogul Platform or any of the MogulREITs, the investment committee may allot the new opportunity based on which entity has gone the longest period without making an investment.
If the investment committee determines that the size of an investment would create undue concentration in the MogulREIT II portfolio or that the entire investment would otherwise be unsuitable, they may permit a portion to be sold on the Realty Mogul Platform to acquire it. They may also choose to deviate from this policy if it impacts the best interest or regulatory requirements of MogulREIT II or another MogulREIT offering.
MogulREIT II is managed by RM Adviser, LLC, a SEC registered investment adviser and wholly-owned subsidiary of Realty Mogul, Co. RM Adviser, which manages MogulREIT II’s day-to-day operations, has access to the experienced team of real estate finance professionals employed by Realty Mogul, Co., including Jilliene Helman, its Chief Executive Officer. Senior executives and loan origination professionals at Realty Mogul have experience in the commercial real estate sector and have been in leadership roles at financial services institutions for many years. Collectively, these professionals have approximately 200 years of combined direct experience in the commercial real estate business, and have managed more than $4 billion of originations and more than $8.5 billion in underwritings in commercial real estate loans and equity investments.
The credit team of Realty Mogul and its affiliates is experienced in reviewing and underwriting commercial real estate investments. The team has adopted approaches used by real estate finance industry leaders in its analysis of real estate capital structures and financial strategies.
Our Manager also may engage American Assets Capital Advisers, LLC, a third-party subadvisor, to manage our cash balance. If engaged, American Assets Capital Advisers, LLC may (i) incur leverage on this cash balance and (ii) may invest the cash and the debt incurred thereon in common or preferred shares in publicly-traded REITs or other short-term investments.
The Manager performs the following services:
- Investment advisory and acquisition services (including performing due diligence on MogulREIT II’s investments);
- Asset management services;
- Accounting and other administrative services; and
- Shareholder services, financing services, and disposition services.
- Where can I get a summary of the MogulREIT II offering and a full list of questions and answers about the offering?
For a summary of the MogulREIT II offering and a full list of questions and answers about the offering, please refer to the Offering Circular.